👉 The royalty fluid is a dynamic pricing mechanism used in the music industry, particularly for streaming services, to adjust the royalties paid to artists based on their performance relative to a benchmark. This benchmark, often set by industry bodies like the RIAA, represents an average royalty rate that artists can expect. When an artist's music achieves higher-than-expected streams, their royalties increase proportionally, reflecting the higher revenue generated. Conversely, if an artist's streams fall short of the benchmark, their royalties decrease. This fluid system aims to fairly reward artists for their increased performance while maintaining a stable financial framework for the streaming platforms.
